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Saudi commercial banks hit record profits in 2024

Ayman Al-Sayari, governor of the Central Bank of Saudi Arabia, which reported that commercial banks' aggregate profits in December hit an all-time monthly high of SAR8.82 billion Graeme Sloan/Sipa USA via Reuters Connect
Ayman Al-Sayari, governor of the Central Bank of Saudi Arabia, which reported that commercial banks' aggregate profits in December hit an all-time monthly high of SAR8.82bn
  • Profits almost SAR90 billion
  • Sama reports asset growth
  • Vision 2030 drives borrowing

Profits at Saudi Arabia’s commercial banks rose to a record SAR89.97 billion ($24 billion) in 2024, an increase of 15 percent year on year.

Aggregate profits in December also hit an all-time monthly high of SAR8.82 billion, according to data released by the Saudi Central Bank (Sama) on Thursday.

The increase in profits comes at a time of high borrowing in Saudi Arabia, largely caused by Saudi Arabia’s Vision 2030 mega-projects, as well as rising demand for housing.

According to the Sama report, the financial assets, or claims, it is owed in both the public and private sectors also grew in 2024, mostly in the second half of the year.

Claims on the public sector grew 15.7 percent from 2023 to SAR794.99 billion while claims on the private sector grew by 13.4 percent to SAR 2.86 trillion.

Private sector imports financed by commercial banks increased to SAR182.3 billion, driven by a big rise in the imports of building materials and machinery.

Demand for liquidity in Saudi Arabia has pushed commercial banks to borrow from international markets and for Sama to draw down its foreign reserves. The central bank’s foreign assets have decreased steadily from SAR1.68 trillion in 2020 to SAR1.54 trillion last year. 

Commercial banks recorded their first year of deficit in their aggregate foreign assets, dropping to SAR34.23 billion from SAR42.88 billion last year.

Earlier this month, S&P Global said that it expected 2025 to be a year of “stable profitability” for Saudi banks, despite their increased foreign liabilities. 

The ratings agency predicts that demand for borrowing will continue to rise within Saudi Arabia, offsetting the costs to banks of tapping international markets.